American International Group acquires Validus Holdings, Ltd.

American International Group acquired Validus Holdings, Ltd. for $5.56 billion in cash; $68.00 per Validus common share, funded with cash on hand, a transaction completed in July 2018, structured as all-cash ($68.00 per share).

Validus Holdings, Ltd. operates in General Insurance (reinsurance, Lloyd's, E&S, crop, insurance-linked securities), is based in Pembroke, Bermuda (global operations, including Lloyd's of London and U.S.). Validus Holdings, Ltd. (NYSE: VR), a Bermuda-based provider of reinsurance and specialty insurance, was acquired by AIG for $5.56 billion in cash ($68.00 per share) via a merger in which AIG subsidiary Venus Holdings Limited merged into Validus under the Bermuda Companies Act. The definitive merger agreement was signed January 21, 2018 and announced January 22, 2018; the deal closed July 18, 2018. Validus brought a diversified set of franchises: Validus Re (reinsurance), AlphaCat (an insurance-linked securities asset manager), Talbot (a Lloyd's syndicate), Western World (U.S. small-commercial E&S) and Crop Risk Services (North American crop insurance). It was the first major acquisition of the Brian Duperreault era rebuilding AIG's General Insurance business.

AIG called Validus a significant step forward in its strategy for profitable growth, adding a diverse and complementary set of attractive franchises across specialized products and regions, enhancing its General Insurance capabilities and expected to be immediately accretive to earnings and return on equity.

A diversified, well-managed specialty franchise spanning reinsurance, Lloyd's, U.S. E&S, crop and ILS that broadened AIG's General Insurance capabilities and geography. expected to be immediately accretive to AIG's earnings and return on equity Integrated into AIG's General Insurance segment

Advisory firms were not disclosed for this transaction.